WYNN - Earnings call transcript Q1 2021

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Operator

Welcome to the Wynn Resorts’ First Quarter 2021 Earnings Call. [Operator Instructions] This call is being recorded. [Operator Instructions] I will now turn the conference over to Craig Billings, President and Chief Financial Officer. Sir, you may begin.

Craig Billings

Thank you, operator. everyone. afternoon, good And

forward-looking we may I Harbor or federal under with Las that are over true. come line Vegas. Carruthers; Brian Coughlan; call Marilyn are I Maddox Spiegel and you turn statements Ciaran statements Gullbrants. to and Luvisutto; in Also Frederic the Maddox. to laws, call those me Safe make the may remind may not securities Matt will today now and Ian want On on the Matt

Matt Maddox

Thanks, everyone. Craig. good And afternoon

we right to thinking been merger Acquisition excited to Before dive results, Austerlitz into I’d really the first we about the like online announce of quarter into I’ve how Wynn last distinct years. we sports Interactive company now talk betting is few that with about Corp. best the are provide which do, is XXX the to we great service. people. knew are product build and a over customer the We space iGaming Interactive what Wynn over in

We to had that’s We bricks opportunity that the realize the lumanaries going a Gaming, as out future that products Bwin team. casino our an long $XX way on. as to knew typically to European year, the one that revenue capitalize billion of of how over opportunity around have plus in XXX some is of be that it we commercial properties by the next we likely person into X are this for the of which X build mortar takes years. large look this lot and And of are people this [Ph] developing responsible is we co-founders we to the from as

pure for Wynn in to value that company, options very Bill, United shareholders clear do and play Wynn partnership investors just States, for Bill renowned clearly Interactive of the create export the it And with thing the the during you -- so right to the career, creating hospitality we one resort various over Foley, know, public was the billion. as professional shareholders. most payments completed in the those a value became He's country. a assets has investing Paysafe, his that luxury that now shareholder he company getting a the is in successful the into around for $XXX recently created He owns team, of gaming the of digital don't sports space. $XXX digital billion most owner

we've Momentum over very saying Vegas, continuing of So of team dollars, partnering Boston, each to Las XXX ensure marketing And merger. and this Macau, a and our product and a month to this this have in details posting in properties with our quarterly the very right going been like we're into venture. has invest this results. go and to about felt our that thing we're in roadmap, and that be after And presentation thinking time talking people, winners this after has the $XXX that, exact spending turn more to about lot excited around call call injected to a do this going it. similar to ahead With to in be the to space, Bill what We'll and accelerate. online and million we're committed that company story. launch capital we'll been I'm

what there. into strength we and as is more what than continue an talking But it's As example, we so about first in moving in like of saw in the we're quarter. I Macau, feel March. we now February the seeing in $XX.X over first million generated EBITDA experienced fast quarter, relevant

results the since the that profit far during amount volumes Week, on able Macau, and as to XX% EBITDA focused we've continuing these were junket, our XXXX. we week to talked about mass we've Golden which in we Macao of May, for So the converting the highest normalized the fluctuate $X in space and between normalized with premium in previous generate of And is because the mass the generated feel of that Week April XXXX, beginning in in pandemic our continued during premium that and market. mass. momentum Golden calls, of day in been in onset and with business comfortable base we've been experienced and Even achieve at confident and to into XX% million of VIP Week, previously was we very fact, the first by position May, we Golden per able

Golden during to year XX% in generated Golden the In of mass we compared Week our the this fact, Week volumes XXXX.

Golden Our is in shining XX%, over retail, was portfolio Golden Macau Week in star hotel numbers North and America across to was Week a our XX% in XXXX. continuing which during up occupancy be the

and Going Macau. forward and the about we over what's very, come to see acceleration And do April are expect continue May to May summer in very excited into in June, going that we'll we the results.

more over the Golden and power and the Macau. to development and earnings Wynn bottom Chinese opportunities understanding future position the market and us in in continue around to best line seeing we consumer to build our in where our in is our top Macau, a what in Palace grow our what Macau and and our do line on market confident headed makes is Just that Week position in

accelerated. encouraging North that We around we what right Las very was Again, really to thought $XX we've volumes trends. when quarter. seen in America Vegas. to Moving And March Madness the quarter. began the in in was EBITDA pick million up in the And first has generated dollars first

our of the XXXX revenues were record. over an record. month the in slot any than second the a month a we're million, back, more record XX% coming in increased focused quarter first revenues a which Vegas. month has than where the other of XXXX clear As REVPAR, is best encouraging month FIFO the month best of April of $XX really much April indication was till is on results. shoot, property consumer April, in April the even what's more Retail second roaring example, our From history the we're in Wynn Las And more on that's green of and which but

take those already date, and quarter you things EBITDA already Vegas. to our the in So in we're has Las seeing looking first Las quarter at exceeded Vegas, that

in going pricing the in forward, we're power. hotel weekends on Our terms of pricing are and focused XXs, occupancy. And really

group on Our actually looking strong the quite year. business half of is holding the and back for

people, we last and entertainment do what We the are restrictions are we is nightclubs to and and roll happy as really just hosted large do to are of our and excited ahead. a In think unique went work, be and our fact, that Las people it lifted, group are and customers best. XXX hitch, conventions we're more first without times off back; our week, able to Vegas really start is best out opportunity so

of the Moving January. quite to hours quarter, with even and million month COVID EBITDA And has Boston significant and for continued. that at record that restricted restrictions Boston achieved $XX Harbor, of trend we Encore operating the in

management our the much really year all rationalize is been and top to quarter. fact, going an to Boston being are is the customers, as quarter-over-quarter XX EBITDA compared in cost, the second on that, building on Super Encore more to northeast. I quarter. now. to Craig the and With this able amazing the daily that more right property over the is continue provide Regional far, turn quarter believe throughout to our that team job. Casino I'm in hitting on it that We've to casino first Harbor the thus Harbor cylinders really In and up Boston focus going run doing grow efficiently details percent, Encore plus to

Craig Billings

Matt. Thanks,

As on Matt million EBITDA $XX.X Macau in of the noted, $XXX revenue. delivered million operating our operations of quarter

with solid controls. in driven Gross XQ XX% performance gaming combined and led was strength March. particular by in with of the by QX Our cost XX day revenue EBITDA gaming mass was premium XXXX approximately non-gaming encouraging per segment

continued April mentioned, per Matt XQ levels. a XXXX, increase mass compared XX% day reach or as to strength XX% XXXX QX dropped $XX.X or million As of into this

approximately games controls, million million cost million from per by XX% flattish level. This QX, a increased down XXXX and positively XXXX results $XX to were was in OpEx day in our table $XX $X in to million XQ tax than gaming day Our $X.X With normal that from was Macau EBITDA hold impacted by respect higher excluding per sequentially. approximately quarter. the normalized

We continues without costs key XXXX weighted per revenue X per gaming team to levels XX% million QX EBITDA and flat segments property done XX% in experience. recover. of during Macau The operating business are Wynn similar the to Vegas, has respectively occupancy. Las business to was negatively guest controlling day job and broad QX decreased from slide was XXXX table The QX leverage adjusted XX% operating we generated in day a to Las impacting based drop XQ in XXXX, compared that as strong well day million reaching saw weakened positioned handle and quarter. casino great XXXX. across largely to per drive At OpEx strength of heavily Vegas OpEx from a taxes excluding to of $X.X million million of on the with $XX.X $XXX.X the

XXXX. on continued day of and in up increased Las continued to per into picked our as the XXXX. modest meaningful per January to very and and permanent move a as EBITDA disciplined accelerate XX% combination In Vegas, million compared in significant decrease we group believe with limitation XXXX, Similar $X.X record operating We March the saves position relative we we've in along gaming in business curtailed strength beginning per back demand tax in second Boston, hours to XXXX, increase XXXk million the positions. QX of of half gaming QX day it with the cost side of date. noted, despite remained cost for XXX,XXX to Matt day the As the of OpEx a well and XQ quarter excluding generated $XX.X much recovery on

mentioned, scaling new innovative to gaps, results, class XXX program. our and efforts over rate and a Wynn gross and Interactive, million March with product on aggressively to now features are branding brand based approximately revenue run world employees close in XXX Matt we gaming ambassador as Turning create develop and key

posted about Investor in website that will at X:XXpm hear business today. our exciting and during this Relations You'll more to video slide our be our presentation Pacific approximately deck

of end globally we liquidity had availability revolver nearly global April and position of of we April, liquidity the to remains Turning April substantially a and In burn lower on U.S., total of as balance to half liquidity the with cash as billion billion our XX. compared the of of the second X X.XX had of approximately available approximately strong very $X.XX XXXX. daily available cash billion in Macau, sheet, with XX,

of proceeds February reminder, shares net million successful we completed $XXX on of X.X a As million. Wynn of a XX, stock, Resorts offering public with

was CapEx quarter Our in the $XX million.

the spend. million the this we With American decision improving, approximately made business proceed remaining have the summer, environment room and to remodel to North Vegas XXX with Las have

Beyond we later Resorts we we CapEx today, extremely Q&A. topics with the your respect we to Please detail what transaction will in will line as remaining Wynn questions gained to mentioned. discuss are that, the further the now more in limit you, open With prudent Wynn confidence a recovery. to presentation Thank that, as operator? I in related Interactive separate

Operator

Deutsche you. Our from Carlo with question [Operator Bank. Thank is Instructions] first Santarelli

You may go ahead.

Carlo Santarelli

obviously in But Matt, Hey, of to that address, you've in you the to what and seeing the confidence kind Week it period. have what type exogamous that in through something you're seen as color provides do around, be little of the come March, just the vaccination some now, golden guys, Macau foresee out of that I through of travel an that kind a getting week would on is really trends as in the used be bit of follow kind can we lot April, people you it loosening type? is extent going thanks. say the follow it? the should pertains visa holiday Or Golden a unbridled? with more Or comfort now more of to to level allow you period, growth restrictions the

Matt Maddox

anticipate unbridled in and been as word continue. Macau the that very increase I Well, into to has now. think been And market. careful don't Yes, tourism the government's use how they unbridled, the nothing do right I'd we continually to cautious

new for seeing So of mass actually positive, strong. they very up things more premium customers, golden was a that actually but think quite mass premium customers, lot I were we're the of yes, lot of mass are week, than during new is a some both us,

Just option because people is to Macau an for travel.

we've over customers And that Macau we long opening never so allowing to acquire China's us that think up the term, before. seen to actually

by, we're goes the we, continued even pretty that want back you that though our windows golden into June, getting each think at short, May quite I to So, And and is do again, strength. about that? good stronger. to week anything week the half of excluded, forecast, it Ian, feeling looking add

Ian Coughlan

visits the almost level before, been And has and I post-holiday of seeing of a we resorts through where to us week of normal what think arranging seen at some believe we've earlier, going golden confidence it's positively no quality who that in we the a be week that's could travelled the ride summer. overseas. economy the to Macau is market weekend of overwhelmed sticky to What lot coming as about people are And I for very but said have say long, summer. a getting traveling Chinese new the for April. higher post And the given they're with to the it's you success than that of customers city. hadn't had way you test in us golden

head as positive. very we the summer, So towards we're

Carlo Santarelli

Great, year, going thank the most just million left through this referring you of spend it. imagine then could Vegas. given, you with by summer you're I very guys. accounts mentioned to I strong last one room in be summer this should And And if CapEx one remodel XXX LV a obviously Craig just to Las like, comment think what guys you

to something the continues As maximum second group the half? kind off stuff back, holding I of keep open to and was was was there on the of that rooms for of there market amount online comes the and up summer kind potentially

Matt Maddox

and wish worried of This we No, uncertainty. going I to the little in XXX,XXX put good, XXXX. to of about were And were Convention remodeled our since been is the we XXXX. our while thing that, wait, idea property we all a launch the you is do. lot we're into didn't. we the at think the XXXX, closed, back million going Matt. spent have we, because to look Center. while half utilize of end COVID I looks yet need to foot would wrong XXXX Clearly, haven't stop And that square a at rooms We actually, hindsight, to room really Because of have the strong. the if is remodel but And $XXX we new our compression, XXXX because

a to and do any remodel And these competitive going go we And XXXX come a you know, refurb with is full job. brand think rag into so room soft XXXX, or, ragweed us of This on XXXX. a And you for want what edge we thoughts going of I to that? want to really Marilyn, this have rooms. into new be is [ph] out product. a is not just it's

Marilyn Spiegel

year. No. want forward that. with to Matt, look XXXX. of we've be the much to about But slow totally And prepared got going end will I And think as finish it we'll by so starts, in ramp up. we to how finished We to it's start be mid for July be, with the a agree

Carlo Santarelli

All much. right, very thank all you

Operator

Greff Thank next you. question go The JPMorgan, may Joe is ahead. with from you

Joe Greff

maybe seeing Hey, based a others and would first guys, indicating today Macau that and what the out seen length just suggest and and numbers for to which visitation on of are just for makes it premium. increased April stay, you given we've on question stronger Macau that you're of the focus May, pivot coming QX much sense

with through type that your just behavior talk what's positioning much a going you kind on in of versus bit assets of of customer that? different about you're little a Macau? And is intentional can how So how maybe

Matt Maddox

you, length one why why don't around Ian, of that Joe, you stay. take don't sure. Yes,

Ian Coughlan

higher consistent, overseas higher that and increase not Sure. lack the new tours trying normally in out quality coming missing We're People technical We're is it's market The previous the but that's is Length pretty been of our to stay stay. a a to length particularly the customer. birth. two a seeing are of travel customer, always of quality three nights, are seeing significant of staying day trippers marketplace. what's to and from customers anyway. city from group market

Joe Greff

I'm missed Great, thank But that. if give sure that April, us sure account mentioned too? not Matt, over May May to in or sort volumes maybe per but not other I day April gave you of you metrics either indication basin the the you terms did you it tie of performance or And strength for it. talked you this in EBITDA sort about and or some of of

Matt Maddox

were the us I I of making know, from festival didn't. then of we're on. and that And just really strength. going were for with April no, volumes soft things experiencing mean, continuing April going strengthen. was month first feel weeks, half level. see grow And Joe, to the Yes, to we Ching it's comment couple that saw little of we're a following the golden that those I back week the to continue Ming other you that and like

Joe Greff

Thank you very much.

Operator

from question The Stanley, you. Thank is next you ahead. Allen go may with Thomas Morgan

Thomas Allen

more encouraging in Vegas, on some focused On in going what's around rate give document And you. really color color you. you XXs. Thank maybe some on can commentary weekdays. how some just on us and weekend Thank teaming you're on you gave rate, the the over

Marilyn Spiegel

Sure.

or really floor. will who appreciate So we've focused here really want in the lay to the focused We're dine come on want to on restaurants right product having room guests will on grabs par. the who our

the and we first they of find, our you had the about see group XX%. less it'll obviously May, will group blocks. yet, come business. points than we filled weekend Mid-week, that, can first we'll be be come of just that XX% XX in and so that's lack their here And And the May

reopened, so At good our would really not rate. dipped that. with felt we we having people one say regular our after many we here. customer was time, And that about I comfortable So

And important have really we REVPAR of will that And rate. the market is you so that very sell on basis. we the see a consistent that the at increased can top

Thomas Allen

then Hopeful just some they quarters customers product. of color. the talked you some maybe Do was that's they happening? And market to as were you like taking wanted ago your of back competitors of quarter, and like best Macau, couple the a on feel the last came feeling you still about

Matt Maddox

we And, other what our that taking VIP saying on with new I premium we segment. will there we're comfortable premium into math seeing feel very that I in our have market assets the but customers. the customers, don't converting way takers actually are remember share and are been that we we're taking that math product people's side core positioned and be the

So I and new more front, our increase our roll share we out, on us Ian, really to new our continue to product. you expect as do have programs do on any that? color that

Ian Coughlan

doing the a at aimed us. mass And launching business in market be which reference which And of private year, may a premium react described, VIP to that that mini we've to property. provide new the some campaign grand spaces non-gaming, reconditioned second had allow XXXX it culinary premium mass of end experiences Wexner to to I which for which half suites series coming summer summer and to the villa got us initiatives think we attract our more with and a our into Center beautiful over apply and were large the more fair will we're long former of the the customers during the We've [Indiscernible]. been full the than premium the got market expanded launch of events We've concerts repurchasing of to more arts villas will for to customers and we're market. share. our capture Macau, we've

got And Morpheus new what summer. of that. at MGM call opening in had about is in excited that. neighborhood, welcome Palace full the we a We've the actually the we're some So arrival circle branded it's And for competition in point particularly up. ramping our marketplace, of despite And farming we we've time. open,

to future, the for introduce Wynn. customers great all new that's to So

Thomas Allen

you. Thank Helpful.

Operator

Thank next from Grambling with Goldman Instructions] Sachs. Our you. [Operator is Stephen question

ahead go may You

Stephen Grambling

it's this we’ll and really Wynn there one to bit that tie question. a resorts win but meant a be Hey little

Some WynnBET of online ensure interact channels talked your of Resorts you with iGaming benefit? sports the benefits peers will and Wynn continue to about to full Omni betting. have capture that have How

Matt Maddox

Craig, why you take don’t one? that

Craig Billings

to. Sure. Happy

I that guess respond two perspectives. I would So to from

we're our rewards that into is products. first of the Wynn The in now midst integrating

presentation XX You'll minutes. in more in the here that see of about

Wynn based product. we million have we'll folks. have America, the And obviously benefit that rewards fully robust business. into that will So do We generate a North XX pretty will database land integrated in believe the about for

And in WynnBET. is really the will, component Massachusetts. will that Then benefit second that return to that so

year. we in So very we gets legalization day And going around ready there's we're a now. sports go the while TBD, betting has in right that floating few different timing is retail there. And have event Massachusetts be one online passed to something and hopeful strong the to done advantage be bills and that would this homecourt

to So where digital plus Boston for be prove we a the both of middle product fruitful asset I think in will the have very billion there businesses. two integration dollar of the

Stephen Grambling

to the Thanks, look seeing forward video.

Craig Billings

Thanks.

Operator

next you. go you response. mute feature? please David from line Katz may David, are Jefferies, The question open, can your ahead. the We your not with David. check getting is Thank you is

open, ahead is line you with go your question. your If may

Matt Maddox

last please. the question, move to let's Operator,

Operator

Yes, thank you.

UBS, Our with Farley last is Robin from may you question go ahead.

Robin Farley

from ask of spin on Resorts, of the Similarly, to stream piece? out is, receiving benefit which the Wynn the about Thanks. royalty will trying that be to really company kind the Resorts question a Great. about Wynn Resorts impact is the brand the Thanks. just Wynn Wynn wanted use think for to

Matt Maddox

bit hand Sure, Robin and about a little talk is it it, then Craig. Matt. over to I'll

is Resorts owner WynnBET the the So you'll that post of you as majority the transaction. at in release find presentation, still Wynn look press

will streams, are properties intercompany roughly like other with company agreements. and royalty post just of of for Resorts our Wynn all XX% the There transaction. arrangements, marketing own So intercompany the

next really in really And, Bill ready a and go million committed have is over that after pure to our the of all with management dollars XXX What's capital. team plus to the play Foley, company So exciting space it of is few place. years. for public us

we XX% of So, clearly, still we're that over and it. of majority company, the owner vote

should you Wynn it So subsidiary a of that? anything add to else continue want about to fully Craig, And, controlled. to Resorts as you think

Craig Billings

in equity representing consumables I the you a that of and to the benefits property use. six one No, to on Wynn that why as hundreds had WynnBET Vegas, the are ownership. we've idea, that. up comes various certainly getting now, transfer but the on of advantage example, excited seen being, like brand our we're as XXXXs But always we rewards. and things really WynnBET think able Resorts at the there being already participate WynnBET of that, been, their and arrangements would offer said that of do are seeing offer how And, we intercompany our just Las sides ability to sounded dollars the in about bricks-and-mortar right customers take we've states. to the in We’ve casinos. both launched of customer of and excited include experience picked a northeast That all customers, may to villa the We've one of lots plane And that.

those will So I both to and that bricks-and-mortar online be very companies have large experience. fully for anticipate experience able database, a and the will that our the WynnBET utilize

Robin Farley

Just kind follow Thanks up Okay, ask a Can one on picture for question. I great. Macau? of bigger the color.

said calls that, I think in that multiyear. might that a previous of be you've it sort

never you and COVID out not normalize versus has pre where business you things XXXX that's And the level, kind that do back piece, the kind not? pre it's think when Thanks. to VIP borders of the levels? picture, Where think when, bigger that are that, that gotten open, do looking issue? just levels VIP of So

Matt Maddox

I've in our saying I I XX% it's mass feels to But outcome. But growth been to in continued more past pre-COVID mass And, hope it positioning hard our the premium really business we're that I'm positioning than that It's it and there of that. we're the on segment. business the for calls, wrong. hope back the predict. like around gets out probably couple of levels.

Craig Billings

just right. would but to business Robin, you're I has add junket evolving And been that, we've The too. been evolving,

are lot playing the actually with operators. Right. a And so of players those directly

resources nauseum, those been talked and, personnel. both ad physical customers, pivoting we've we've So as resources kind better serve of to and about service

we're so deal with positioned like. well whatever transition, looks the transition that And ultimately to

Robin Farley

Great. much. Thank you very

Matt Maddox

you folks. talking great Have All to right. Thank a you to We forward day. again. look

Operator

conference. you. Thank today’s Thank That does you for participating. all conclude

may time. You disconnect this at

Wynn Resorts, Limited (WYNN) 11 May 212021 Q1 Earnings call transcript